How to get the most out of IT-outsourcing: advice to managers
What do outsourced projects and highway have in common?
They both seem perfect for fast results – no speed limits, straight to the goal. But make one wrong turn or hit a bump, and everything crashes hard.
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The global IT outsourcing market size was valued at $108.25 billion.
Why is this market so huge?
For most companies, especially those facing a shortage of qualified IT specialists, outsourcing becomes a solution to the problem.
However, despite many obvious advantages, many managers ask themselves:
- how to effectively manage an external team?
- how to establish communication and control processes?
We interviewed our managers to compile instructions for you on how to maintain control over an IT project and evaluate the effectiveness of the team.
How to control the IT outsourcing project in the right way?
Very often, due to anxiety, you want to check in with the team once an hour. BUT what is the optimal meeting frequency?
The frequency of meetings varies depending on the methodology.
There are two main approaches to work planning – Agile and Waterfall.
Agile
The Agile philosophy is more suitable for projects that require a high degree of adaptation and change. It allows you to respond faster to changes in requirements and save time on implementation.
- This approach is widely used in startups and IT companies, where tasks and requirements can change during the work process. So that during the first iterations of development, it is possible to understand whether the development is moving in the right direction, and whether the result meets the customer’s expectations.
When working with Agile, it is recommended to call the team several times a week to synchronize work and discuss emerging issues.
Waterfall
Waterfall is an approach in which the project is developed according to a pre-planned plan. This approach is especially often used in such areas as fintech or oil and gas industry, where all stages of work must be planned and agreed upon in advance.
- This methodology is used when the customer’s requirements provide a clear understanding of what product is expected at the end, thanks to a specific technical task.
“Working according to Agile is really convenient. The team is always in touch, and they do 100% what the business needs.”
Virginia Gray – Chief Digital Officer
In the case of Waterfall, it is enough to meet once every two weeks to monitor the implementation of key stages of the project, because all the key points have already been planned.
| Agile | Waterfall | |
| Status meeting for synchronization with PM | 1 time per week | 1 time per week |
| Thematic meetings with PM | as needed | as needed |
| Meetings with the team | are not needed | 2-3 times per week |
“The number of meetings does not directly depend on the methodology, but rather on the agreements with the customer.”
Kseniya Pankratsyeva – Chief Strategy Officer
Software requirements specification
In order not to lose control, it is important to define clear and detailed technical tasks in advance, which eliminate ambiguity and give the team a clear understanding of the expected result. Read our previous article on how to write a quality technical task.
SRS is the foundation of any IT project. It defines what exactly should be done, how, and when. However, writing a technical specification is not just a formality, but an important process.
How to avoid communication problems?
Often one of the biggest obstacles to successful cooperation with an outsource team is insufficient communication. The solution is simple: agree on the rules of the game in advance.
Using task trackers is a must when working with an IT company (Asana, Jira, Trello)
- Depending on the situation, the client or contractor can provide access to their board. In AKDev Group we use Jira. We either open access to our boards for clients, or they give us access to their service. Which tracker will be used depends on the client.
A single messenger is also selected, where teams will quickly correspond on work issues, most often it is Slack.
“It is nice to work when the customer formulates requirements through a single channel. This helps to avoid misunderstandings and conflicting instructions.
Aksana Miadzvedskaya – Head of Innovations
How to make sure that the team is working at full capacity?
Controlling the quality of the outsourced team’s work is no less important a task than finding this team.
We recommend giving the team a test task at first: set 1-2 tasks, check them, evaluate the speed and quality of work, and if everything is fine, hire the team.
“As a rule, a couple of tasks are enough to understand how quickly and well the guys write and whether you can rely on them.”
Anna Paar – Chief Delivery Officer
How to evaluate team performance?
A major mistake is trying to control every move a contractor makes. This wears you out, frustrates the team and kills efficiency.
To monitor team performance without micromanaging, you need to define high-level criteria for work performance.
High-level assessment is a quick analysis of the contractor’s performance by key indicators, without delving into technical details. It’s like checking the “pulse” of the project without doing a full medical examination.
How to motivate an IT outsource team?
You need to make the team feel that its work is important and appreciated.
“During the implementation of a project, you need to move away from the concepts of client and customer and work as one team with a single goal.
Mariya Pankratsyeva – Head of Customer Success
Each team member should know what needs to be done and what is required of the developers – this will make it more comfortable for them to work and increase the chances that the result will meet the customer’s expectations.
“Come to meetings not only to control, but also to inspire the team. A satisfied customer motivates the team better than any KPI.”
Virginia Gray – Chief Digital Officer
It is important to trust the outsourced team as experts. Despite your ideas and plans, always listen to the comments of specialists and take into account their recommendations.
The success of the project depends not only on the technical skills of the outsourcers, but also on how competently you build interaction and common work. If the contractor consistently fulfills the plan and solves problems, then you can relax. If not, it’s time to take action.
Good outsourcing is when the contractor becomes part of your team, and not just a “third-party performer.”
At AkDev, we empower our clients with cutting-edge technologies, enabling them to seize new market opportunities. Let’s collaborate and achieve great things together!
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